Aussie Dollar Softens as US-Iran Talks Stall
AUD
The Aussie Dollar opens largely flat against the majors this morning following unease surrounding the stability of the US-Iran peace deal. The Nikkei traded +0.3% while the Shenzhen and Hang Seng were closed due to the Chinese Dragon Boat Festival public holiday. The ASX 200 closed -0.9% as materials and utilities sectors led losses at -4% and -0.8%. A quiet day today data wise but a big week ahead for key Aussie economic data. Wednesday will see the release of our CPI inflation data, and the focus will be on the trimmed mean print, which could come in at 0.3% MoM (3.5% YoY). On Thursday we have our key employment data, which currently forecasts the Unemployment Rate to tick down slightly to 4.4% from 4.5%.
USD
AUDUSD starts the week flat at 0.7005 off the back of global unease about whether the US-Iran ceasefire, which had sparked a rally across the week, would hold after planned peace talks were called off. A quiet end to last week with both the U.S. Stock and Bond markets closed for the Juneteenth holiday while S&P 500 futures closed -.2% in a shortened session. Brent Crude rose .9% and above $80 a barrel as work was still being done on securing a lasting deal between the U.S. and Iran. US President Donald Trump is, once again, threatening to unleash fury on Iran, this time saying that the regime in Tehran needs to pull its proxies in Lebanon into line or face the consequences. Looking at the week ahead on the economic calendar, the main focus will be on Thursday with Core PCE Price Index, Final GDP q/q and Unemployment Claims all set for release.
EUR
AUDEUR opens this morning flat at 0.6111 as the pair awaits any updates on the stability of the US-Iran peace deal. European equities closed in the red, with the DAX and CAC coming in at -0.2% and -0.6% respectively. Later tonight ECB President Lagarde is due to testify before the European Parliament's Committee on Economic and Monetary Affairs and may provide insight on monetary policy decision. Tomorrow will see the release of Eurozone manufacturing and services PMI data and are currently forecasted to be flat.
GBP
AUDGBP also begins the week flat at a rate of 0.5303 following the news that British PM Keir Starmer is expected to resign after pressure built steadily over the weekend for him to go. The FTSE also closed in the red at -0.4%. The week ahead is looking relatively quiet on the data front with the main release being Flash Manufacturing and Services PMI data which are expected to remain flat, showing little growth in the sectors.
NZD
AUDNZD opens in the green at a rate of 1.2220. Later this afternoon, NZ Credit Card Spending y/y is set to release, previously at 2.9%, which will do little to move markets. No major releases expected for the week out of New Zealand.